High Performance SBR Wastewater Reuse Systems Company Looking to Grow

Opportunity Snapshot

  • Country: India India
  • Industry: Waste Management
  • Stage: Initial growth (first revenues)
  • Investment size: $1,500,000 / min. $1,000,000
  • Type of investment: Debt

Investment Opportunity

The Company focuses on Wastewater Reuse technology development and applies an energy-efficient, advanced SBR process for apartments, hospitals and institutions.

Many conventional STP’s failed to give reusable quality water due to poor design, lack of skilled manpower etc., cause immense difficulties to the communities, institutions and builders, consumes more power and O&M costs.

We have developed and implemented successful SBR process delivering reusable quality water (<10 ppm BOD) while saving 25% energy. This technology, in addition to high performance and less foot print, returns on additional expenditure in 24 to 36 months through reduced disposals, saving in energy and manpower costs. The Company had executed 3 orders and 4 orders are in progress.

Converting the conventional STP into SBR through retrofit involves initial investment. This Initial investment is the major constraint from the customer side. We have developed a business model to tap the vast market of retrofit and service, through 12 to 24 monthly paying Flexible Investment Scheme to the customers.

Our company already studied the field and made a detailed plan for carrying out Centralized Control and Operation of multiple STP Units in a locality, using SCADA and DATA gathering through Internet, to reduce onsite manpower cost and rendering emergency service from fully equipped central team.

Competitive Advantage

There are a few large companies that offer SBR Systems for Class-I cities generating more than 100 MLD municipal sewage. We are the only SBR Supplier with advanced technology for small flows 50 to 600 kLD, typically needed in Apartment Communities, Commercial Buildings, Hospitals and Institutions.

In India Wastewater Recycle is mandatory for building on areas over 2000 sq.m since 2005 as India is water stressed with 1700 m3/capita year. The economic loss of poor sanitation in India is estimated to $ 53.8 Billion by World Bank report based on 2006 population.

As the present Activated Sludge Process is failed to provide water reuse quality, we have good market potential over the coming years. Less than 30 percent of the sewage generation is treated in India and the Indian Government is requiring large infrastructure development for urban cities and rural areas, as stated in its Water Mission and Sanitation-For-All during 2012-2017.

Our business model of SBR RETROFIT for converting existing ASP Sewage Treatment Plants, first for the private sector and later to municipalities, will support with huge opportunity during 2012-2017 (12th Five Year Plan) as the market size is close to $ 1 Trillion including Public and Private sector Sanitation Infrastructure. Our main strength is timely technology development and up-gradation to complete the projects professionally in time.

The relevant documents (available in internet) regarding the market opportunity are the following:

a. Report on Indian Urban Infrastructure and Services (finalreport-hpec.pdf)
b. India Infrastructure Report 2011: Water: Policy and Performance for Sustainable Development (0-IIR-2011.pdf)
c. Primer on o7. Bye laws for reuse of wastewater: Optional Reform under JnNURM (primer07.pdf

Rationale for the deal

The market is large and we are one of the best to meet the challenging opportunity in New or Retrofit for the existing sewage treatment plants for quality reuse water.

Our business model will support us in getting orders and making profits. India requires more qualified and professionally managed companies to meet the requirements.

Presently, we are focusing on private buildings and institutions for early fund flow, and after 12 to 18 months, we will enter government municipalities for high value orders.

Use of financing

Due to the huge opportunity our company is interested to operate professionally on higher scale with in-house laboratory and infrastructure to make custom-built components. Hence, the company is looking for financial assistance of $ 1,500,000 which includes 12 months working capital.

Opportunity for the investor

We are looking for Debt Investment of $ 1.5 Million from hands-on investor at an interest rate of 18% over a period of 8 months.

Investment Installment Schedule: 25% initially, 25% in 3 months, and 10% each for succeeding 5 months to cover the working capital.

We offer investors a payback period of 3.5 years and an IRR of above 25%.

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